HISD windfall has its share of winners, losers

Property tax rate won't go up, but prospects dim for jobless

Published 5:30 am, Monday, June 20, 2011

Taxpayers in the Houston Independent School District can relax for now, but the news isn't as good for the hundreds of teachers and other employees who have been laid off.

HISD Superintendent Terry Grier revealed Monday that, despite earlier suggestions, he does not plan to propose an increase to the property tax rate for the upcoming school year. He also will ask the school board Thursday to continue a special tax break known as the optional homestead exemption.

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A better-than-expected budget proposal from the Texas Legislature has left HISD with $22 million more than district officials had projected for the upcoming school year. But that doesn't mean the 724 teachers, librarians and other school-based educators who got pink slips will be rehired.

Grier has not recommended what to do with the extra money, but his spokesman, Jason Spencer, said the superintendent would caution against spending on personnel because the funding could dry up the following year. HISD, like other districts across Texas, will face a shortfall in the 2012-13 year based on the Legislature's proposed two-year budget.

Saving surplus suggested

HISD expects to lose $79 million in state funding for the upcoming school year, a 5 percent cut. Next year, the loss of state money would rise to $127 million, or 9 percent, based on the latest state budget plan, which could be finalized this week.

HISD board members Greg Meyers and Harvin Moore suggested Monday that the district save the surplus for 2012-13, when the budget picture is worse. "It's been a disastrous (legislative) session for us," Moore said.

"It'll save programs, and it will save jobs," he said, adding that perhaps the board would consider a tax increase in 2012 when no trustees are up for re-election.

Tax rate said to be lowest

An HISD news release notes that the district's tax rate of $1.1567 per $100 of assessed value is the lowest in Harris County, and that its offering of the special homestead exemption, which reduces taxable value by 20 percent, is rare.

The board will vote Thursday on the $1.5 billion general operating budget for the upcoming school year. It won't officially adopt the tax rate until September or October after tax rolls are certified.

Based on earlier state budget proposals, HISD officials had been preparing to lose $160 million in the coming year — about twice what the latest legislative plan shows. Melinda Garrett, HISD's chief financial officer, said she is "fairly confident" in the latest projections.

The HISD school board, expecting a worse financial situation, voted unanimously in March to reduce the money it gives schools by $275 per student - a move that pushed principals to lay off staff. It also voted to restore funding under certain circumstances.

The HISD school board, expecting a worse financial situation, voted unanimously in March to reduce the money it gives schools by $275 per student - a move that pushed principals to lay off staff. It also voted to restore funding under certain circumstances.

With the new budget numbers, HISD's lawyers plan to review the earlier motion to see whether the board must return the funding to schools or take another vote if it wants to save the money instead.

Some teachers rehired

Ann Best, who oversees human resources in HISD, said 81 of the 724 teaching employees who received layoff notices have found other jobs in the district or have been rehired at their schools after vacancies arose. She said she expects more to land jobs this summer. Under HISD's decentralized system, a teacher could be laid off from one school but apply to work at another.

The cuts to the per-pupil funding totaled $58 million. The HISD board also has cut $18 million from the central office, which included eliminating about 280 jobs, many of which were vacant.

In addition, the board has voted to close four elementary schools, saving $631,611, and reduced the pot for educator performance bonuses by $4.6 million, according to the district.

Grier's administration has not proposed dipping into HISD's fund balance, estimated at $212 million. The amount is less than two months of the district's spending.